Showing 1 - 10 of 17
We study the impact of falling trade costs and falling national transport costs on the economic geography of countries involved in an integration process. Two regions between which labour is mobile form each country, but there is no international factor mobility. Commodities can be traded both...
Persistent link: https://www.econbiz.de/10005667127
intersectoral) is the key to agglomeration, but migrants base their decision on current wage differences alone--even though …. Agglomeration, therefore, can be a self-fulfilling prophecy. …
Persistent link: https://www.econbiz.de/10005666517
Recent trade models determine the equilibrium distribution of firm-level efficiency endogenously and show that freer trade shifts the distribution towards higher average productivity due to entry and exit of firms. These models ignore the possibility that freer trade also alters the firm-size...
Persistent link: https://www.econbiz.de/10005666664
deregulation of the transport sector leads to more inefficient agglomeration. This latter change may, quite surprisingly, increase …
Persistent link: https://www.econbiz.de/10005791947
complex, since they feature demand-linked and cost-linked agglomeration forces. The paper presents a simpler model, where … agglomeration stems from demand-linked forces arising from endogenous capital with forward-looking agents. The model’s simplicity … permits many analytic results (rare in economic geography). Trade-cost levels that trigger catastrophic agglomeration are …
Persistent link: https://www.econbiz.de/10005136511
This Paper considers tax competition and tax harmonization in the presence of agglomeration forces and falling trade …
Persistent link: https://www.econbiz.de/10005136579
We distill the main insights from recent trade models on firms' responses to globalisation. Our primary aim is to assess the economic impact and the welfare implications of the resulting reallocation of resources across firms and countries. In so doing, we bring theory into life through the...
Persistent link: https://www.econbiz.de/10005136703
analysis. A ‘selection effect’ means standard empirical measures overestimate agglomeration economies. A ‘sorting effect’ means …
Persistent link: https://www.econbiz.de/10005498028
This paper takes a modest step towards formalizing the theoretical interconnections among four post-Industrial-Revolution phenomena – the industrialization and growth take-off of rich ‘northern’ nations, massive global income divergence, and rapid trade expansion. Specifically, we present...
Persistent link: https://www.econbiz.de/10005498127
We extend the model by Krugman (1980) to a multi-country set-up and show that the ‘home-market effect’ highlighted with two countries does not readily extend to such a general setting. In particular, we prove that the most important result, namely the disproportionate causation from demand...
Persistent link: https://www.econbiz.de/10005114440